Boeing fuss could benefit Alabama

Union members celebrate the turn down of the proposed Boeing Corporation contract Wednesday night at the Internal Association of Machinists District 751 Headquarters in Seattle, Nov. 13, 2013. The vote would have secured production of the new Boeing 777x for the Seattle area in exchange for heavy worker contract cuts. The union voted to turn down the new contract by 67 percent.

The Associated Press

The Associated Press

Published: Friday, November 15, 2013 at 3:30 a.m.

Last Modified: Thursday, November 14, 2013 at 11:45 p.m.

SEATTLE | Boeing’s history in the Pacific Northwest dates back more than a century, when William Boeing purchased a Seattle shipyard that would become his first airplane factory.

In recent years, however, those ties have been fraying, first with the company shifting its headquarters to Chicago, then with the development of a new production line in South Carolina.

Now, the relationship between Boeing and Washington state is near the point of unraveling after a fiery debate among machinists this week led the workers to reject a long-term contract.

On Thursday, Boeing made good on its threats and said it is looking elsewhere to develop its popular new 777X airplane — and the company may take thousands of jobs along with it.

Boeing Co. spokesman Doug Alder declined to specify where the company is now looking, saying there is no short list and that there are many places both within Boeing’s current operations and outside that are being explored.

“Everything is back on the table,” he said.

Boeing has helped anchor western Washington state’s economy for decades, but that relationship began to fray about 15 years ago. In 2001, the company moved its headquarters from Seattle to Chicago.

In 2003, Washington state lawmakers approved a broad package of tax breaks for Boeing in hopes of securing long-term work on the company’s new 787 airplane. While that plane is being built in the Puget Sound, Boeing has since developed a new production line in South Carolina and placed wing production in Japan.

Alex Pietsch, who serves as Gov. Jay Inslee’s leader on aerospace issues, said Thursday he now expects fresh competition for the 777X line from places like South Carolina, Texas, southern California, Utah, Alabama and Georgia. Alabama’s industry recruiters in recent years have listed the aerospace industry as one its key targets.

“This is arguably the most significant prize in commercial aviation history,” Pietsch said.

The governor’s office is hopeful that Boeing and the machinists can come back together in the near future to explore a potential compromise — perhaps when both sides have had a chance to cool down from the recent contract battle, Pietsch said.

In the contract vote late Wednesday, the International Association of Machinists District 751 rejected the proposal with 67 percent of the votes. Union members who called for a no vote did so in protest of Boeing’s push to end a traditional pension plan and increase their health care costs.

The deal would have exchanged those concessions for the long-term stability expected with the 777X line. Workers would have received a $10,000 signing bonus if they approved the deal.

The long-range, twin-aisle 777 holds about 365 passengers, making it Boeing’s

second-biggest plane. Since its first flight in 1994, it’s been a best-seller for Boeing, which has sold more 777s than any of its other current large planes.

In May, it began offering the revamped 777X. Boeing is still finalizing plans for the plane, but it has said it is expected to carry as many as 400 passengers and to be 20 percent more fuel efficient than the current 777.

Instead of the current all-aluminum wing, the 777X wing is expected to be made from composites, the same high-tech plastic that makes up most of Boeing’s new 787. Boeing is aiming to deliver the first 777X by the end of this decade.

The 777X is meant to compete with the new Airbus A350, which is undergoing flight testing now.

It’s also going to compete with Boeing’s slightly larger 747-8 Intercontinental, which has seen sluggish sales even before the 777X has been formally launched.

<p>SEATTLE | Boeing's history in the Pacific Northwest dates back more than a century, when William Boeing purchased a Seattle shipyard that would become his first airplane factory. </p><p>In recent years, however, those ties have been fraying, first with the company shifting its headquarters to Chicago, then with the development of a new production line in South Carolina. </p><p>Now, the relationship between Boeing and Washington state is near the point of unraveling after a fiery debate among machinists this week led the workers to reject a long-term contract. </p><p>On Thursday, Boeing made good on its threats and said it is looking elsewhere to develop its popular new 777X airplane — and the company may take thousands of jobs along with it. </p><p>Boeing Co. spokesman Doug Alder declined to specify where the company is now looking, saying there is no short list and that there are many places both within Boeing's current operations and outside that are being explored. </p><p>“Everything is back on the table,” he said. </p><p>Boeing has helped anchor western Washington state's economy for decades, but that relationship began to fray about 15 years ago. In 2001, the company moved its headquarters from Seattle to Chicago. </p><p>In 2003, Washington state lawmakers approved a broad package of tax breaks for Boeing in hopes of securing long-term work on the company's new 787 airplane. While that plane is being built in the Puget Sound, Boeing has since developed a new production line in South Carolina and placed wing production in Japan. </p><p>Alex Pietsch, who serves as Gov. Jay Inslee's leader on aerospace issues, said Thursday he now expects fresh competition for the 777X line from places like South Carolina, Texas, southern California, Utah, Alabama and Georgia. Alabama's industry recruiters in recent years have listed the aerospace industry as one its key targets. </p><p>“This is arguably the most significant prize in commercial aviation history,” Pietsch said. </p><p>The governor's office is hopeful that Boeing and the machinists can come back together in the near future to explore a potential compromise — perhaps when both sides have had a chance to cool down from the recent contract battle, Pietsch said. </p><p>In the contract vote late Wednesday, the International Association of Machinists District 751 rejected the proposal with 67 percent of the votes. Union members who called for a no vote did so in protest of Boeing's push to end a traditional pension plan and increase their health care costs. </p><p>The deal would have exchanged those concessions for the long-term stability expected with the 777X line. Workers would have received a $10,000 signing bonus if they approved the deal. </p><p>The long-range, twin-aisle 777 holds about 365 passengers, making it Boeing's </p><p>second-biggest plane. Since its first flight in 1994, it's been a best-seller for Boeing, which has sold more 777s than any of its other current large planes. </p><p>In May, it began offering the revamped 777X. Boeing is still finalizing plans for the plane, but it has said it is expected to carry as many as 400 passengers and to be 20 percent more fuel efficient than the current 777. </p><p>Instead of the current all-aluminum wing, the 777X wing is expected to be made from composites, the same high-tech plastic that makes up most of Boeing's new 787. Boeing is aiming to deliver the first 777X by the end of this decade. </p><p>The 777X is meant to compete with the new Airbus A350, which is undergoing flight testing now.</p><p>It's also going to compete with Boeing's slightly larger 747-8 Intercontinental, which has seen sluggish sales even before the 777X has been formally launched.</p><p>/</p>